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FMBN showcases products at Lagos Fair

FMBN showcases products at Lagos Fair

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Federal Mortgage Bank of Nigeria (FMBN) has joined numerous corporate organisations to showcase its products at the ongoing Lagos International Trade Fair (LITF).

Its Managing Director/ CEO, Ahmed Dangiwa, said the bank has the primary mandate of financing affordable housing for the low and middle income earners in both the formal and informal sectors through the National Housing Fund (NHF) scheme by registering and contributing 2.5 per cent of their monthly income.

The overall objective, he said, is to provide cheap source of loanable funds to nurture and sustain the mortgage industry and eventually facilitate affordable home-ownership for the low and medium income group in the country. Also to increase more  participation by Nigerians, the bank has scrapped equity contribution for houses not more than N5 millíon while loan request above N5 millon, but not more than N15 million, attracts 10 per cent equity.

To achieve Section 14 (2) of the National Housing Fund Act Cap N.45 of 1992, which  stipulates that a contributor to the Fund can access a loan from the Fund for the purpose of building, purchasing or renovating of existing houses, Dangiwa said FMBN has developed concessionary loan windows to enable Nigerians access mortgages for home ownership.

“However, in the event that the contributor could not benefit, he or she would be refunded his or her contributions plus interest after attaining the age of 60 years or after 35 years in service as stipulated by the NHF Act.”

To enhance operational processes, the bank chief said FMBN had gone digital with the launch of the USSD code *219# platform where contributors can access information such as retrieval of NHF account number, account balance, generate statement of account, check affordability using the mortgage calculator etc which means that the use of passbook is phased out.

“FMBN, as at today, is the last succour of the common man in Nigeria through its affordable mortgages and home construction financing.

“Construction financing is granted to State Housing Corporations in partnership with the state governments to deliver houses to civil servants and citizens alike. It also allows an eligible beneficiary to build/construct a residential property. Maximum amount shall not exceed N15million with repayment period of 15 years  at seven per cent interest rate.

“This is apart from the National Affordable Housing Development Programme being currently implemented by the bank in collaboration with NLC, TUC, NECA and interested state governments.

The programme is delivering 100 units of houses in each state of the federation, in a mix of three, two and one bedroom semi- detached bungalows and block of flats.

“The FMBN ‘Rent-to-Own’ scheme is an innovative affordable housing product, which provides an easy and convenient payment plan towards home ownership for Nigerian workers.

It presupposes that the usual periodic rent due for such properties either monthly or annually would then be utilized for the installment payment for such property of which the occupant would eventually become the owner.

The product attracts a single digit interest rate of nine per cent through monthly or yearly rent payments spread over periods of up to 30 years with a maximum value of N15 million.

“Cooperative Housing Loans is a housing finance for organised cooperative societies, who desire mortgage facility for their members.

“Home renovation loan has liberalised conditions for easy access by Nigerian workers. It is specifically designed for the renovation or improvement of existing homes which are personally owned or through family ownership. Maximum amount to access is N1million at 6 per cent per annum for a tenure of 5 years.”

 

 

The SUN

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